Follow Up

Bubble Trouble at Tesla

The electric-car maker had a strong June quarter. Investors have awarded it a market value of $18 billion. We think the shares are worth a third of that. And the rebound of disability insurer Unum offers an opportunity for investors to take profits.

August 10, 2013

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Electric-car pioneer Tesla Motors reported a triumphal June quarter last Wednesday, jolting the company's shares to $153 (ticker: TSLA) by week's end. At a market value for Tesla of $18 billion, investors are looking far beyond its current $90,000 Model S and betting that founder Elon Musk will sell hundreds of thousands of lower-priced cars.